Building costs in the Northern Territory have exploded by as much as 40 per cent in the last month alone, threatening the future of both home builds and commercial construction projects.
On the back of Australia’s fuel crisis, building costs have blown out dramatically over the past month, with key figures in the Territory building industry pleading for government help.
According to Sky News, builders in the NT are refusing to sign fixed price contracts due to the rising costs of key materials.
The Middle East crisis has seen fuel prices rise by 45 per cent over the past month, with those price rises for transport being baked into the costs of construction.
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NT construction costs are up massively. Picture: Pema Tamang Pakhrin
“In the construction industry, concrete, reinforced steel, plaster board, these are all materials that rely on freight and they are all going up,” said Jim Eadie, President of Master Builders NT.
“It’s hitting the construction industry hard across the country and really biting in the Top End.
“PVC piping for example, has risen by 40 per cent since the war on Iran began.
“Diesel is how these materials are brought here and rising cost of that rule alone is what is impacting us.
Eadie said the NT government needs to consider helping the construction industry, with the rising costs of infrastructure already being felt across the industry.
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Home builds have been hit hard.
“It’s impacting residential builders and bigger projects,” he said.
“Buildings can’t give fixed prices on builds because it could cost them dearly.
“Houses won’t be built, commercial projects too, schools, retail.”
NT Treasurer Bill Yan said the government was looking at what they can do to ease concerns and rising costs.
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Jim Eadie President Master Builders NT, Ben Hall Chief Executive Officer AAT Kings Group and at the 2025 Northern Territory Investment Summit in NT Parliament House on 15 July 2025. Picture: Pema Tamang Pakhrin
“We are looking at how the fuel crisis affects thaose that provide business services to the NT and making sure we are doing right by them,” he said.
Such investigations might include looking at taxes and levies on a longer-term basis.
At the moment the Federal Government has signalled it will only halve the fuel excise for the months of April, May and June.
NT Treasurer Bill Yan as the NT government announced that petrol station operators found guilty of ripping off Territorians could face up to two years in jail or fines of $74,000 under a 77-year-old law enacted by the government Tuesday, March 31, 2026. Picture: Thomas McLean
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